JP Morgan exec challenges CCPs over skin in the game

"Why wouldn't you put up... all of your capital?" asks Olsen

JP Morgan is pushing CCPs to contribute more default capital

Amid a growing clamour for clearing houses to stump up more loss-absorbing capital, the head of JP Morgan's clearing business has suggested central counterparties (CCPs) should allow all their capital to be wiped out before emergency measures impose losses on end-users.

"For all of our customers, we put all of our capital between a default and the clearing house – 100%. It doesn't stop there, though. We are also asked to contribute to the guarantee fund for risks we didn't introduce," said Dave

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